Description of Public Liability and Property Damage (PLPD) Car Insurance
When you are behind a wheel of a car there is naturally a possibility that you might cause a crash and injure other people and damage people's property. Bodily injury and property damage liability auto insurance is bought to cover such claims against you if the accident was your fault. Unfortunately, this policy will not cover the injuries and losses suffered by you.
Bodily injury section would pay for any medical bills, death benefits and burial expenses of the third-party motorists, passengers and other individuals affected. The property damage part pays for any damages to the vehicles, road rails, homes, fences and so on.
Every motorist must at least buy this policy to drive a car legally in America. It is typically referred as bare bones insurance because it covers the minimal legal requirements. Nevertheless you could get a lot more than the legal minimums with a negligible increase in your premium.
It is easier to explain this with an example. If your limits are 20/50/30, this means:
- Maximum bodily injury insurance payment per person could not exceed $20,000
- Maximum bodily injury insurance payment per accident could not exceed $50,000
- Maximum property damage insurance payment per accident could not exceed $30,000
Clearly, the claimants will have to go after you for any loss that is not paid by your insurance. Therefore, it would be advisable to attain ample coverage without much regard to lowest decided by your state.
You might prefer to purchase personal injury protection (PIP) and collision insurance to cover your own medical costs and monetary damages. Additionally, in few states in America no fault is assigned to any party in a car accident and hence everybody needs to pay for their losses. For this reason personal injury protection will be the legal demand in such no fault states.
Essentially, this cover is the important component of any vehicle insurance. You should begin with this coverage and include additional coverage based on your risk profile and means.
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